System and Method for Providing Variable Insurance Coverage

1. A computer implemented method for enabling a policy holder of an insurance supplement to vary provisions of the insurance supplement, the method comprising: at least temporarily storing on a data storage medium data relative to an insurance supplement that includes: (i) a deductible provision, set at a first deductible amount; (ii) a premium provision, set at a first premium amount; (iii) a first conversion provision that reduces the first deductible amount to a second deductible amount on the occurrence of one of the following predefined events that may occur after insurance coverage under the insurance supplement begins: (a) the policy holder attaining a predetermined age; amount of time; or (b) a decline in the physical health of the policy holder; and (iv) a second conversion provision that reduces the first deductible amount to the second deductible amount and increases the first premium amount to a second premium amount after the election by the policy holder; wherein an election of the second conversion provision by the policy holder terminates the first conversion provision; selling the insurance supplement to the policy holder; receiving premiums in accordance with the insurance supplement; receiving a notice that at least one of the predefined events occurred to trigger the first conversion provision; computing a reduction of, and thereafter reducing, the first deductible amount to the second deductible amount with a computing device associated with the data storage medium.

2. The computer implemented method according to claim 1 , further comprising: defining the deductible provision, premium provision, first conversion provision, and second conversion provision within a rider; and associating the rider with the insurance supplement.

3. The computer implemented method according to claim 1 , further comprising: not increasing the first premium amount on the occurrence of at least one of the predefined events.

4. A system for enabling a policy holder of an insurance supplement to vary provisions of the insurance supplement, the system comprising: a data storage medium at least temporarily storing data relative to the insurance supplement; wherein the insurance supplement includes: (i) a deductible provision, set at a first deductible amount; (ii) a premium provision, set at a first premium amount; (iii) a first conversion provision that reduces the first deductible amount to a second deductible amount on the occurrence of one of the following predefined events that may occur after insurance coverage under the insurance supplement begins: (a) the policy holder attaining a predefined age; or (b) a decline in the physical health of the policy holder; and (iv) a second conversion provision that reduces the first deductible amount to the second deductible amount and increases the first premium amount to a second premium amount on the election of the policy holder; wherein an election of the second conversion provision by the policy holder terminates the first conversion provision; the data including at least the insurance supplement (i) first deductible amount, (ii) first premium amount, (iii) second deductible amount, (iv) second premium amount, and (v) the identities of the predefined events; computing a reduction of and thereafter reducing, the first deductible amount to the second deductible amount with a computing device associated with the data storage medium at least one computer readable medium operatively coupled with said data storage medium; said at least one computer readable medium comprising: (a) software configured to receive notice that at least one of the predefined events occurred to trigger the first conversion provision; (b) software configured to compute a reduction of, and thereafter reduce, the first deductible amount to the second deductible amount on the occurrence of at least one of the predefined events.

5. The system according to claim 4 wherein the insurance supplement includes a rider that defines the deductible provision, premium provision, first conversion provision, and second conversion.

6. The system according to claim 4 wherein said at least one computer readable medium further comprises software configured to not increase the first premium amount on the occurrence of at least one of the predefined events without notice that the policy holder has made the election.

7. A computer implemented method for enabling a policy holder of an insurance supplement to vary provisions of the insurance supplement, the method comprising: at least temporarily storing on a data storage medium data relative to the insurance supplement that includes: (i) a deductible provision, set at a first deductible amount; (ii) a premium provision, set at a first premium amount; (iii) a first conversion provision that reduces the first deductible amount to a second deductible amount on the occurrence of one of the following predefined events: (a) the policy holder attaining a predetermined age; or (b) a decline in the physical health of the policy holder; and (iv) a second conversion provision that reduces the first deductible amount to the second deductible amount and increases the first premium amount to a second premium amount on the election of the policy holder; wherein an election of the second conversion provision by the policy holder terminates the first conversion provision; selling the insurance supplement to the policy holder; receiving premiums in accordance with the insurance supplement; receiving an election by the policy holder to enact the second conversion provision; computing a reduction of and thereafter reducing, the first deductible amount to the second deductible amount, with a computing device associated with the data storage medium, and computing an increase of, and thereafter increasing, the first premium amount to the second premium amount with the computing device.

8. A computer implemented method for enabling a policy holder of an insurance supplement to vary provisions of the insurance supplement, the method comprising: at least temporarily storing on a data storage medium data relative to the insurance supplement that includes: (i) a deductible provision, set at a first deductible amount; (ii) a premium provision, set at a first premium amount; (iii) a first conversion provision that reduces the first deductible amount to an intermediate deductible amount on the occurrence of one of the following predefined events that may occur after insurance coverage under the insurance supplement begins: (a) the policy holder attaining a predetermined age; or (b) a decline in the physical health of the policy holder; and (iv) a second conversion provision that reduces the first deductible amount to the second deductible amount and increases the first premium amount to a second premium amount on the election of the policy holder; wherein an election of the second conversion provision by the policy holder terminates the first conversion provision; selling the insurance supplement to the policy holder; receiving premiums in accordance with the insurance supplement; determining that: (i) at least one of the predefined events have occurred; and (ii) the policy holder has not elected the second conversion provision; computing a reduction of and thereafter reducing, the first deductible amount to the intermediate deductible amount with the computing device associated with the data storage medium.

9. The computer implemented method according to claim 8 , wherein: the first conversion provision reduces the first deductible amount to a plurality of successive intermediate deductible amounts after the occurrence of one of the predefined events; the plurality of intermediate deductible amounts each decreasing in amount in successive order; and the step of reducing the first deductible amount includes reducing the first deductible to the plurality of intermediate deductible amounts in a plurality of separate steps after the passage of the occurrence of one of the predefined events.

10. A system for enabling a policy holder of an insurance supplement to vary provisions of the insurance supplement, the system comprising: a data storage medium at least temporarily storing data relative to the insurance supplement; wherein the insurance supplement includes: (i) a deductible provision, set at a first deductible amount; (ii) a premium provision, set at a first premium amount; (iii) a first conversion provision that reduces the first deductible amount to a second deductible amount on the occurrence of one of the following predefined events that may occur after insurance coverage under the insurance supplement begins: (a) the policy holder attaining a predetermined age; or (b) a decline in the physical health of the policy holder; and (iv) a second conversion provision that reduces the first deductible amount to the second deductible amount and increases the first premium amount to a second premium amount on the election of the policy holder; wherein an election of the second conversion provision by the policy holder terminates the first conversion provision; the data including at least the insurance supplement (i) first deductible amount, (ii) first premium amount, (iii) second deductible amount, (iv) second premium amount, and (v) the identities of the predefined events; at least one computer readable medium operatively coupled with said data storage medium; said at least one computer readable medium comprising: a) software configured to receive notice that the policy holder has made the election to trigger the second conversion provision; b) software configured to compute a reduction of and thereafter reduce, the first deductible amount to the second deductible amount and compute an increase of and thereafter increase, the first premium amount to the second premium amount.

11. A system for enabling a policy holder of an insurance supplement to vary provisions of the insurance supplement, the system comprising: a data storage medium at least temporarily storing data relative to the insurance supplement; wherein the insurance supplement includes: (i) a deductible provision, set at a first deductible amount; (ii) a premium provision, set at a first premium amount; (iii) a first conversion provision that reduces the first deductible amount to an intermediate deductible amount on the occurrence of one of the following predefined events that may occur after insurance coverage under the insurance supplement begins: (a) the policy holder attaining a predetermined age; or (b) a decline in the physical health of the policy holder; and (iv) a second conversion provision that reduces the first deductible amount to the second deductible amount and increases the first premium amount to a second premium amount on the election of the policy holder; wherein an election of the second conversion provision by the policy holder terminates the first conversion provision; and the data including at least the insurance supplement (i) first deductible amount, (ii) first premium amount, (iii) second deductible amount, (iv) second premium amount, and (v) the identities of the predefined events; at least one computer readable medium operatively coupled with said data storage medium; said at least one computer readable medium comprising: a) software configured to determine that: (i) at least one of the predefined events have occurred; and (ii) the policy holder has not elected the second conversion provision; b) software configured to compute a reduction of, and thereafter reduce, the first deductible amount to the intermediate deductible amount.

12. The system according to claim 11 wherein: the first conversion provision reduces the first deductible amount to a plurality of successive intermediate deductible amounts after the occurrence of one of the predefined events; the plurality of intermediate deductible amounts each decreasing in amount in successive order; and the at least one computer readable medium further comprises software configured to reduce the first deductible amount to a plurality of intermediate deductible amounts in a plurality of separate steps after the occurrence of one of the predefined events.

13. A computer implemented method for enabling a policy holder of an insurance supplement to vary provisions of the insurance supplement, the method comprising: at least temporarily storing on a data storage medium data relative to the insurance supplement that includes: (i) a deductible provision, set at a first deductible amount; (ii) a premium provision, set at a first premium amount; (iii) a first conversion provision that reduces the first deductible amount to a second deductible amount on the occurrence of one of the following predefined events that may occur after insurance coverage under the insurance supplement begins: (a) the policy holder attaining a predetermined age; or (b) a decline in the physical health of the policy holder; and (iv) a second conversion provision that reduces the first deductible amount to the second deductible amount and increases the first premium amount to a second premium amount after the election by the policy holder; wherein an election of the second conversion provision by the policy holder terminates the first conversion provision; selling the insurance supplement to the policy holder; receiving premiums in accordance with the insurance supplement; receiving a notice that at least one of the predefined events occurred to trigger the first conversion provision; computing a reduction of and thereafter reducing, the first deductible amount to the second deductible amount with a computing device associated with the data storage medium.

14. A computer implemented method for enabling a policy holder of an insurance supplement to vary provisions of the insurance supplement, the method comprising: at least temporarily storing on a data storage medium data relative to the insurance supplement that includes: (i) a deductible provision, set at a first deductible amount; (ii) a premium provision, set at a first premium amount; (iii) a first conversion provision that reduces the first deductible amount to a second deductible amount on the occurrence of one of the following predefined events: (a) the policy holder attaining a predetermined age; or (b) a decline in the physical health of the policy holder; and (iv) a second conversion provision that reduces the first deductible amount to the second deductible amount and increases the first premium amount to a second premium amount on the election of the policy holder; wherein an election of the second conversion provision by the policy holder terminates the first conversion provision; selling the insurance supplement to the policy holder; receiving premiums in accordance with the insurance supplement; receiving an election by the policy holder to enact the second conversion provision; computing a reduction of, and thereafter reducing, the first deductible amount to the second deductible amount, with a computing device associated with the data storage medium, and computing an increase of and thereafter increasing, the first premium amount to the second premium amount with the computing device.